Question 1

________, when placed in key positions, are perceived by employees as acceptable compromises between headquarters and local managers.

Accepted Answer

Third-country nationals, who are not from the headquarters or local location, are often seen as a neutral party and can facilitate communication and decision making between the two groups. They can also bring fresh perspectives and ideas to the organization.

Question 2

A global staffing policy ________.

Accepted Answer

A global staffing policy provides a greater pool of qualified and willing applicants from which to choose. This is important because it allows companies to select the best candidates for key managerial positions, regardless of their nationality. Avoiding third-country nationals or relying solely on local managers may limit the pool of qualified candidates, while favoring headquarters staff may lead to a lack of cultural understanding and adaptability in overseas operations.

Question 3

Who, among the following, when used to manage subsidiaries, usually brings more cultural flexibility and adaptability to a situation?

Accepted Answer

Third-country nationals often bring more cultural flexibility and adaptability to a situation because they are neither from the parent (home) country nor the host country, allowing them to bridge cultural gaps more effectively.

Question 4

Felix Department Store has over 900 stores in the United States and over 300 stores in Mexico and Canada.Felix has been particularly successful in Mexico, and the firm's executives believe Felix should expand into other Latin American countries.As a result, plans are underway for the construction of a new Felix store in Managua, Nicaragua.The construction, once started, is expected to be completed within a year, so staff selection needs to begin soon.Felix's executives are considering the idea of using parent-country nationals to manage the new store in Nicaragua.Which of the following, if true, undermines the argument that parent-country nationals should manage the Felix store in Nicaragua?

Accepted Answer

Using parent-country nationals to manage the new store in Nicaragua contradicts the strategy of "acting local," which suggests adapting to local cultures and practices for better success in global expansion.

Question 5

Recruiting managers from Latin America for a position in Brazil is an example of ________.

Accepted Answer

The regiocentric staffing approach involves hiring managers from within a particular region, in this case, Latin America, to work in the host country, Brazil. This approach recognizes similarities and differences within a region and selects candidates based on their regional expertise and cultural understanding.

Question 6

Most MNCs tend to start their operations in a particular region by selecting primarily from their own pool of managers.Over time, and with increasing internationalization, they tend to move to a predominantly polycentric or regiocentric policy because of ________.

Accepted Answer

The transition to a polycentric or regiocentric policy often comes as a response to the high costs associated with expatriate staffing, including salaries, relocation expenses, and additional benefits to incentivize managers to work abroad.

Question 7

Which of the following is NOT a barrier for maintaining globalization momentum?

Accepted Answer

Having an international team is not a barrier for maintaining globalization momentum, as having a diverse group of individuals with different perspectives and expertise can actually aid in the globalization process. On the other hand, time and cost constraints, conflicting host government requirements, and the scarce availability of staff can all hinder the progress of globalization efforts.

Question 8

________ are managers with global experience who are transferred to the organization's headquarters country, so their overseas business and cultural experience and contacts can facilitate interactions among the country's far-flung operations.

Accepted Answer

Inpatriates are managers who are transferred from foreign subsidiaries to their organization's headquarters to share their global experience and contacts with the home country's operations. They can help facilitate interactions among the organization's geographically dispersed operations. Third-country nationals are individuals who are neither citizens of the host country nor of the organization's home country. Host-country nationals are individuals who are citizens of the country where the organization's subsidiary is located. Repatriates are employees who return to their home country after an overseas assignment.

Question 9

Which of the following will most likely produce a specific mix of parent-country nationals, home-country nationals, and third-country nationals, according to the needs of the company?

Accepted Answer

Regiocentric staffing approaches are aimed at finding the best mix of parent-country nationals, home-country nationals, and third-country nationals according to the company's requirements. This approach is commonly used by multinational companies that operate in different regions and seek to balance global integration with local responsiveness. Ethnocentric staffing approaches tend to favor parent-country nationals, polycentric staffing approaches favor home-country nationals, and local staffing approaches favor host-country nationals.

Question 10

Which of the following is true with regard to the global staffing approach?

Accepted Answer

Recruiting third-country nationals is a common aspect of the global staffing strategy as it allows companies to leverage diverse skills and perspectives from individuals who are neither from the host nor the parent country.

Question 11

Felix Department Store has over 900 stores in the United States and over 300 stores in Mexico and Canada.Felix has been particularly successful in Mexico, and the firm's executives believe Felix should expand into other Latin American countries.As a result, plans are underway for the construction of a new Felix store in Managua, Nicaragua.The construction, once started, is expected to be completed within a year, so staff selection needs to begin soon.Felix's executives are considering the idea of using parent-country nationals to manage the new store in Nicaragua.Which of the following, if true, best supports the argument that parent-country nationals should manage the Felix store in Managua, Nicaragua?

Accepted Answer

The fact that Felix wants to maintain close control of the Nicaragua store for at least three years suggests that they may want to use parent-country nationals to manage the store. Parent-country nationals would be more familiar with Felix's policies, procedures, and culture, and would likely be more effective in ensuring that the new store is aligned with Felix's overall strategy. Additionally, using parent-country nationals would allow Felix to maintain control over the new store and ensure that it maintains consistent standards with other Felix locations.

Question 12

Host-country nationals are employees assigned to key positions in countries other than their own.

Accepted Answer

Host-country nationals are employees who are citizens of the country where the multinational company's branch or subsidiary is located, not employees assigned to work in countries other than their own.

Question 13

When a company is at the internationalization stage of strategic expansion, and has a centralized structure, it will likely use a polycentric staffing approach to fill key managerial positions.

Accepted Answer

When a company is at the internationalization stage of strategic expansion and has a centralized structure, it is more likely to use an ethnocentric staffing approach rather than the polycentric approach. In the ethnocentric approach, key managerial positions are filled with people from the parent country, while in the polycentric approach, key positions are filled with local employees.

Question 14

Which of the following is an advantage of the staffing approach that employs parent-country nationals as top managers?

Accepted Answer

Employing parent-country nationals as top managers ensures that control over subsidiaries remains with the headquarters. The cultural gap between headquarters and subsidiaries may not exist, but parent-country nationals may not understand the local environment sensitive to local political conditions, culture and language. By employing parent-country nationals, this gap is minimized, and maintaining control is easier.

Question 15

More recently, a staffing option known as ________ has been utilized to provide a linking pin between the company's headquarters and local host subsidiaries.

Accepted Answer

Inpatriates are employees who are transferred from a host subsidiary to the headquarters of a company. They act as a linking pin between the headquarters and the local host subsidiaries. Therefore, option B is the best choice. Option A, expatriates, refers to employees who are sent to work in a foreign country. Option C, transpatriates, refers to employees who work in multiple countries over the course of their career. Option D, migrants, is a broader term often used in the context of international migration and refers to people who move permanently or semi-permanently from one country to another.

Question 16

Given the generally accepted consensus that staffing, along with structure and systems, must "fit" the desired strategy, firms desiring a truly worldwide posture should adopt a(n)________.

Accepted Answer

A global staffing approach is the only one that truly fits the desired strategy of a worldwide posture. This approach involves recruiting and hiring employees from all over the world, and it allows firms to tap into the best talent available, regardless of nationality.

Question 17

________ staffing approach usually results in a higher level of authority and decision making at headquarters compared to the polycentric approach.

Accepted Answer

The ethnocentric staffing approach generally involves hiring employees from the home country and sending them to work in foreign subsidiaries where they supervise and direct local employees. This approach often results in a higher level of authority and decision making at headquarters, as headquarters staff are typically more experienced and have a better understanding of the company's goals and strategies. In contrast, the polycentric staffing approach involves hiring local employees to manage operations in each foreign subsidiary, resulting in greater autonomy for each subsidiary and less centralized decision making at headquarters.

Question 18

In which of the following staffing approaches, are the best managers recruited from within or outside of the company, regardless of nationality?

Accepted Answer

The answer of In which of the following staffing approaches,...

Question 19

Which of the following is an advantage of the polycentric staffing approach?

Accepted Answer

Local managers hired through polycentric staffing approach have better knowledge of local needs and sensitivities. Hence, they can be helpful in dealing with problems in sensitive political situations. This can help the subsidiary navigate through local political and economic hurdles.

Question 20

Which of the following terms is increasingly replacing the term "expatriate" due to the global staffing approach?

Accepted Answer

Transpatriate is the term that is increasingly replacing the term "expatriate" due to the global staffing approach. Transpatriate refers to an employee who is a citizen of one country but is temporarily assigned to work in another country by their employer. It emphasizes the idea of mobility and the fact that these employees may move to multiple countries for work during their careers. Repatriate refers to an employee returning to their home country after an international assignment. Global manager and line manager are not relevant to the question.

Quiz 9: Staffing, Training, and Compensation for Global Operations